valuation

sales comparison approach

The sales comparison approach estimates value by comparing the subject property to recently sold similar properties, called comparables, and adjusting their prices for differences such as size, features, location, and condition. Adjustments are always made to the comparables, not the subject. It is the most reliable approach for single-family homes and vacant land where sales data is plentiful.

Exam tip
Adjust the comp, never the subject. If the comp is better, subtract; if the comp is worse, add (CBS: comp better, subtract).
Example
A comparable sold for $410,000 and has a garage worth $15,000 that the subject lacks; its adjusted price is $395,000.

Related terms & state variants

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Last verified: 2026-10-23